Goldman Sachs, Mike Novogratz Invest $15M In BitGo Holdingsbr>
Goldman Sachs Group and former partner Mike Novogratz’s Galaxy Digital Ventures are investing in cryptocurrency custodian BitGo Holdings Inc., a further toe dip into cryptocurrency by the Wall St. investment house.
The two entities reportedly contributed $15 million to BitGo’s Series B fundraising, which brought in a total of $57.5 million, according to a Bloomberg report.
“If you were investing in any other asset class, you’re probably not worried about the asset just disappearing — but this one, people still have that fear,” said Mike Belshe, BitGo’s co-founder and chief executive officer, in a Bloomberg News interview. “We’ve got to conquer that.”
BitGo is based in Palo Alto and offers digital wallets that require multiple signatures and offline cold storage vaults. So far, the company has raised $70 million and claims to hold more than $2 billion in assets.
The investment by Goldman Sachs is yet another step on the path toward full services for clients in cryptocurrency. Goldman has been among the Wall St. leaders in exploring digital currency, and was the first to clear bitcoin futures. It has named a head of digital assets, a move seen as a prelude to full-on market participation in the crypto sector.